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LONDON (Alliance News) - Shares in Active Energy Group PLC rose Thursday as it signed a memorandum of understanding to acquire a controlling stake in PowerWood Canada Corp, which holds multiple forestry assets in Alberta, Canada.
Shares in the renewable energy and forestry management company rose 10% at 4.40 pence on Thursday.
PowerWood currently holds enough forestry contracts and Forestry Management Agreements with the province to use 300,000 tonnes of merchantable timber, from a total forestry area of up 5.0 million hectares.
Active Energy plans to construct a 25 tonnes per hour CoalSwitch plant at the site, believing it can improve forestry economics by utilising timber processing waste, forestry residues and aspen to produce CoalSwitch fuel and PeatSwitch soil amendments.
"This MoU represents a further step forward in our focused strategy to secure long-term forestry assets and guarantee feedstock volumes to support our planned roll-out of CoalSwitch plants in Canada and Europe. I am confident that this arrangement with PowerWood Canada will lead to other governmental and private sector forestry owners signing further commercial agreements with the company in the near future," said Chief Executive Officer Richard Spinks.
